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How to negotiate the price of your ED BMW

153K views 249 replies 93 participants last post by  MB330 
#1 · (Edited)
How to negotiate the price of your ED BMW

About a year ago, I wrote an article for Boston Bimmer describing how to negotiate the price of an ED car.

The European Delivery experience is a life-altering event - one which I hope you are lucky enough to experience. When I was asked to write about my most recent BMW European Delivery experience for the Boston Chapter of the BMW Car Club of America I decided not to focus on how wonderful the program is.

Instead, I detailed the pricing and ordering process one must go through to order a BMW European Delivery car. I also pointed out some important differences between the normal car-buying process and how a BMW European Delivery transaction works. It's not hard to understand or manage - but it's not at all the way you normally buy a car.

Here's a link to the article: How to buy a BMW via the European Delivery program.

I hope you find it useful.
 
#112 ·
I'm somewhat fortunate to live in Southern California with the choice of over a dozen dealers to work with, a few of which are board sponsors. My advice is try to do the whole transaction by email with the internet sales manager, who in most cases also does the ED's. When I wrote to them for a quote, I never mentioned ED invoice price. I informed them I wanted an ED on a 228i and I listed my options. I mentioned to them I'd done my internet research and I know what a good price is. If they were a board sponsor, I would mention I read about them on Bimmerfest. Most of them responded with ED invoice price +$0, $500, $750, $1000 in their answer. So most of them knew what I was looking for without saying it.

If you are working with a dealer that acts like you don't know what your talking about when you mention ED invoice price, he's ether an idiot or he's lying. That's why it's best to work by email with the internet manager. The internet manager knows he's dealing with a savvy shopper and won't BS you the way the average salesman will if you go in person or call.
 
#116 · (Edited)
How to negotiate the price of your ED car

Is there simply no way to do an ED and take advantage of the current exchange rate between the USD and euro?

Just since last summer when I was in Munich we've gained almost an 18% advantage in the exchange rate. If I wanted to purchase a $100,000 item from Germany today, I'd save $18,000 over buying it six months ago.

But if BMW says that they'll only build US cars, selling them at a static US sales price - somebody's making an extra 18% today than they did last summer. Do the dealers in the US still have to pay based on a fixed price like we do? Or do they buy at current exchange rates and pocket the difference? Or is it just BMW Corp. that enjoys the spread?

How do we get in on some of that action?

Kevin
Seattle
 
#117 ·
I believe that it will be BMW that enjoys the increased profit due to the favorable exchange rate. It would be nice if we could save some dollars, instead the base price of the Six Series Gran Coupe has gone up! :yikes:
 
#118 · (Edited)
New 640GC Lease Calculation

Ok, have read up on everything and am trying to figure out the purchase price and lease calculation on a 2015 640GC

Purchase Cost:
Base US Retail Vehicle Only $78,300.00 x .92 (dealer discount) x .93 (ED discount) = $66,993.48
Base US Retail Options Only $18,300.00 x .92 (dealer discount) (no ED discount) = $16,836.00
Total ED Purchase Price: $83,829.48
Total US Purchase Price: $96,600.00
Discount from US Retail: 13.22%

Leasing Depreciation Cost:
ED Purchase Price of $83,829.48
Residual Value of $56,028.00 (US Retail of $96,600.00 x 58% residual value) << Is using the lease calculation on the BMW website accurate for a build your own vehicle? I divided their residual over retail to come up with 58% (It was 62% when we purchased in 2012)
Monthly depreciation expense $712.86 ($27,801.48 depreciation / 39 month lease)

Lease Money Cost:
ED Purchase Price of $83,829.48
Residual Value of $56,028.00
Total of the two: $139,857.48 x .00081 (lease rate with 7 MSD's) = $113.28

Total: $826.14 monthly payment. ($712.86 depreciation + $113.28 money cost)

How many miles per year would this .00081 rate provide?

Using our purchase in 2012 with the same vehicle options, we are currently paying $1,009.00 per month with 15,000 miles per year. This was before the M package offered a larger discount by combining many previously separately purchased options.

Is this correct?
 
#120 ·
How many miles per year would this .00081 rate provide?
The money factor doesn't determine the miles per year. It's the residual that is based on the miles per year. You used 58% residual, which is what BMWFS is currently offering for a 39-months, 10,000 miles-per-year lease (total of 32,500 miles).

If you increase the miles-per-year to 15,000 (48,750 total), your money factor will remain the same but your residual percentage will be less. Sorry, but I can't tell you the exact percentage because I'm not up-to-date on that stuff. :)
 
#128 · (Edited)
This is the current layout of my M3 with European Delivery:

15TN M3 Sedan USD 57,710.00
B68 Yas Marina Blue Metallic 550.00
LKSW Black Extended Merino Leather 950.00
ZLP Lighting Package 1900.00
552 Adaptive Full LED Lights N/C
5AC Automatic high beams N/C
2MK M Double-clutch Transmission with Drivelogic 2900.00
2VZ 19" Black Light-Alloy Wheel Double-SpokeStyle 4... 1200.00
428 Warning triangle N/C
496 Heated rear seats N/C
4LX Highlight trim finishers Black Chrome N/C
4MC Carbon Fiber Interior Trim N/C
688 Harman Kardon surround sound system 875.00
Net Total 66085.00
Destination Charge 950.00

Total Suggested Price $67,035.00

US MSRP is $62,000
Destination charge: $950
Options: $8,375

So by the calculations I'm seeing here...

$62,000 * 0.93 * 0.92 = $53,047.20 +
$8,375 * 0.91 = $7,621.25 +
$950

Invoice: $61,618.45

I'm seeing people say target $750-$1,500 over invoice. Does this mean my offer should actually be something like $62,500 / $63,000?

That just seems incredibly low to me, but if it's what people are saying I'm fine to go with it.
 
#129 · (Edited)
This is the current layout of my M3 with European Delivery:

15TN M3 Sedan USD 57,710.00
B68 Yas Marina Blue Metallic 550.00
LKSW Black Extended Merino Leather 950.00
ZLP Lighting Package 1900.00
552 Adaptive Full LED Lights N/C
5AC Automatic high beams N/C
2MK M Double-clutch Transmission with Drivelogic 2900.00
2VZ 19" Black Light-Alloy Wheel Double-SpokeStyle 4... 1200.00
428 Warning triangle N/C
496 Heated rear seats N/C
4LX Highlight trim finishers Black Chrome N/C
4MC Carbon Fiber Interior Trim N/C
688 Harman Kardon surround sound system 875.00
Net Total 66085.00
Destination Charge 950.00

Total Suggested Price $67,035.00

US MSRP is $62,000
Destination charge: $950
Options: $8,375

So by the calculations I'm seeing here...

62,000 * 0.93 * 0.92 = 53,047.20
8,375 * 0.91 = $7,621.25

Invoice: $61,618.45

I'm seeing people say target $750-$1,500 over invoice. Does this mean my offer should actually be something like $62,500 / $63,000?

That just seems incredibly low to me, but if it's what people are saying I'm fine to go with it.
Whole different ball of wax with M cars. M cars come out of a dealer allocation, so the $500-$1000 over ED invoice generally doesn't apply. In most cases dealers will ask for ED MSRP on a M car, although usually you can do a little better, but not as good as a "regular" BMW. That being said, every now and again you find someone getting a deal at $1K over, but much more rare.

When I inquired briefly on a M4 before I decided on my M235, was told ED MSRP.
 
#133 ·
So I read this thread and many of the links but did not see anything on how trades work.

I am thinking of a new 3 or 5 and have a 2012 X5 to put into the deal. I took PErformance Center Delivery on that and would do the same with an ED car. While I have a desire to run it through my excellent local dealer and make it advantageous for them in any way (price sensitive caveat applies however) that isn't absolutely critical.

From the thread above it sounds like, short story, the ED deal is with corporate and the trade is with dealer. I can cope with the math in that but will appreciate any words of wisdom from anyone who has BTDT.

Big question is - how do you negotiate a trade value months in advance of the delivery?
 
#134 ·
So I read this thread and many of the links but did not see anything on how trades work.

I am thinking of a new 3 or 5 and have a 2012 X5 to put into the deal. I took PErformance Center Delivery on that and would do the same with an ED car. While I have a desire to run it through my excellent local dealer and make it advantageous for them in any way (price sensitive caveat applies however) that isn't absolutely critical.

From the thread above it sounds like, short story, the ED deal is with corporate and the trade is with dealer. I can cope with the math in that but will appreciate any words of wisdom from anyone who has BTDT.

Big question is - how do you negotiate a trade value months in advance of the delivery?
 
#135 ·
Big question is - how do you negotiate a trade value months in advance of the delivery?
How you do it is also negotiable. If they want, they could give you a number that your car would be worth to them today in its present condition and then give you an estimate of what they think it will probably be worth in that same condition but with x-number of added miles three months from now. Then tell you that's subject to reappraisal at time of redelivery.

Or you could insist on a firm trade-in value now, based on the car being in the same condition and with an agreed-upon number of additional miles. This is always possible but just be aware that it might be a conservative figure because they don't want to get burnt if the market suddenly dips for some unforeseen reason. Obviously they don't want to do this for two reasons. If they make the number reasonable from their point of view they may not get the deal but if they go overboard, they may lose money.

What they would like to do, by far, is simply say that it can't be appraised this far in advance and that they have to wait until the day you come in to pick up your car to find out how much they're willing to give you for it.
 
#139 ·
So I went to my dealer today to commit to a MY2016 F80 M3, via ED in Oct 2015.. This will be my second ED, and second M3, but first from this dealer. However, I did buy my current AH3 from him, so he knows I'm serious. He obviously couldn't commit to a price today, nor did I push him on any particular discounts. He said he'll "take care of me", but also joked that his boss wouldn't let the first MY2016 M3 allocation go cheap.

Question: should I ask them to commit to a price just as soon as the ordering guides for MY2016 come out? I'm estimating that will be mid-May. I offered to put down a deposit today, he refused saying it was not necessary. Also, he has not done an ED before. He is very nice and responsive, which goes a long way with me. I would consider using a board sponsor, but I would like to take advantage of the ~$2K tax savings I'd get by trading my current car towards a new one at this dealer. I assume that tax savings would offset (potential) additional savings via a board sponsor. Plus, I have a good relationship with my CA, and would rather use him, unless I feel like I'm getting totally bent over.
 
#140 ·
So I went to my dealer today to commit to a MY2016 F80 M3, via ED in Oct 2015.. This will be my second ED, and second M3, but first from this dealer. However, I did buy my current AH3 from him, so he knows I'm serious. He obviously couldn't commit to a price today, nor did I push him on any particular discounts. He said he'll "take care of me", but also joked that his boss wouldn't let the first MY2016 M3 allocation go cheap.

Question: should I ask them to commit to a price just as soon as the ordering guides for MY2016 come out? I'm estimating that will be mid-May. I offered to put down a deposit today, he refused saying it was not necessary. Also, he has not done an ED before. He is very nice and responsive, which goes a long way with me. I would consider using a board sponsor, but I would like to take advantage of the ~$2K tax savings I'd get by trading my current car towards a new one at this dealer. I assume that tax savings would offset (potential) additional savings via a board sponsor. Plus, I have a good relationship with my CA, and would rather use him, unless I feel like I'm getting totally bent over.
 
#141 ·
My first post here. I am purchasing an M4 Convertible for my son's graduation, and want to pick it up in Munich (which marks the 45th anniversary of my first trip to Octoberfest in 1970). Anyhow, want to travel all over southern Europe with the car on ED, visit Bologne (Lambo), Modena (Ferrari), Pagani, etc, and go a lap or two around the Nurburgring if time permits.

Enjoyed and very much appreciated your information on ED pricing, and would also like to know the dealer you dealt with that was willing to negotiate. Here in Silly Valley, no one seems to want to negotiate, and they all say that ED comes out of their allotment - is that true?

Anyhow, I would very much appreciate a PM with the dealer's info, as I might just give him/her additional business within the next week or so. Thanks again.
 
#142 ·
You may get some sage advice from locals, but I suggest you contact Greg Poland @Pacific BMW, Jon Shafer @ SBA BMW and get a data point from each of them... maybe David Aviles at Steve Thomas too.

Your dealer's are correct, currently M cars do come from their allocation and, as you know, there is silly money and silly folks in Valley so a lower quartile deal up there may be problematic.
 
#151 ·
Huh?? Autonation is one of the largest BMW franchisees in the US; Penske right behind them.
 
#159 ·
We are currently in Prague on an ED for an M4 we picked up on Monday. We found the dealers in SoCal to be BS-ing us so we went with Adrian Avila adriansbmw@gmail.com - we had to pay an additional $1k to get the car to Cali but we still saved a lot and we'd rather pay someone straightforward than a haggler type. If that's your style shoot Adrian an email. PM me if you need more specifics :)
 
#162 ·
I am new here and very interested in getting me a BMW (one that goes fast).
In regards to negotiating the price of a BMW, can I start from the bottom price of ED-price without actually going to Europe for the pick-up?
No, you absolutely MUST show up in person in Munich to take delivery of the car. There are absolutely no exceptions. You don't technically even have to drive it (you can pay them extra for the 'privilege' of not driving it yourself to a dropoff location). But if you can't get yourself to the BMW Welt in Munich, forget about ED pricing.
 
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